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91_HB3852eng
HB3852 Engrossed LRB9112662SMdv
1 AN ACT concerning liens.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5 changing Section 11-141-7 as follows:
6 (65 ILCS 5/11-141-7) (from Ch. 24, par. 11-141-7)
7 Sec. 11-141-7. The corporate authorities of any
8 municipality that owns and operates or that may hereafter own
9 and operate a sewerage system constructed or acquired under
10 the provisions of any law of this state may make, enact, and
11 enforce all needful rules, regulations, and ordinances for
12 the improvement, care, and protection of its sewerage system
13 and any other sewer or sewerage system, located outside the
14 corporate boundary of the municipality and not owned by it,
15 that directly or indirectly connects with the municipality's
16 sewerage system, which may be conducive to the preservation
17 of the public health, comfort, and convenience, and may
18 render the sewage carried in the sewerage system of the
19 municipality harmless in so far as it is reasonably possible
20 to do so.
21 The corporate authorities of such a municipality may, by
22 ordinance, charge the inhabitants thereof for the use and
23 service of its sewerage system whether by direct or indirect
24 connection therewith within or without the corporate
25 boundary, and to establish charges or rates for that purpose.
26 The corporate authorities of such a municipality may by
27 ordinance charge the users thereof, whether they be inside of
28 or outside of the municipality, for the use and service of
29 its sewerage system whether by direct or indirect connection
30 therewith, within or without the corporate boundary, and may
31 establish charges or rates for that purpose, provided however
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1 that where such users are residents of another municipality
2 with whom there is a contract for use and service of the
3 sewerage system, then such charges or rates shall be made in
4 accordance with the terms of the contract, either directly to
5 the users or to the contracting municipality as may be
6 provided by the provisions of the contract. In making such
7 rates and charges the municipality may provide for a rate to
8 the outside users in excess of the rate fixed for the
9 inhabitants of said municipality as may be reasonable. Where
10 bonds are issued as provided in Sections 11-141-2 and
11 11-141-3, the corporate authorities shall establish rates or
12 charges as provided in this section, and these charges or
13 rates shall be sufficient at all times to pay the cost of
14 operation and maintenance, to provide an adequate
15 depreciation fund, and to pay the principal of and interest
16 upon all revenue bonds issued under Sections 11-141-2 and
17 11-141-3.
18 A depreciation fund is a fund for such replacements as
19 may be necessary from time to time for the continued
20 effective and efficient operation of the system. The
21 depreciation fund shall not be allowed to accumulate beyond a
22 reasonable amount necessary for that purpose, and shall not
23 be used for extensions to the system.
24 Charges or rates shall be established, revised, and
25 maintained by ordinance and become payable as the corporate
26 authorities may determine by ordinance.
27 Such charges or rates are liens upon the real estate upon
28 or for which sewerage service is supplied whenever the
29 charges or rates become delinquent as provided by the
30 ordinance of the municipality fixing a delinquency date. A
31 lien is created under the preceding sentence only if the
32 municipality sends to the owner or owners of record, as
33 referenced by the taxpayer's identification number, of the
34 real estate (i) a copy of each delinquency notice sent to the
HB3852 Engrossed -3- LRB9112662SMdv
1 person who is delinquent in paying the charges or rates or
2 other notice sufficient to inform the owner or owners of
3 record, as referenced by the taxpayer's identification
4 number, that the charges or rates have become delinquent and
5 (ii) a notice that unpaid charges or rates may create a lien
6 on the real estate under this Section. However, the
7 municipality has no preference over the rights of any
8 purchaser, mortgagee, judgment creditor, or other lien holder
9 arising prior to the filing of the notice of such a lien in
10 the office of the recorder of the county in which such real
11 estate is located, or in the office of the registrar of
12 titles of such county if the property affected is registered
13 under "An Act concerning land titles", approved May 1, 1897,
14 as amended. This notice shall consist of a sworn statement
15 setting out (1) a description of such real estate sufficient
16 for the identification thereof, (2) the amount of money due
17 for such sewerage service, and (3) the date when such amount
18 became delinquent. The municipality shall send a copy of the
19 notice of the lien to the owner or owners of record of the
20 real estate, as referenced by the taxpayer's identification
21 number. The municipality has the power to foreclose this lien
22 in the same manner and with the same effect as in the
23 foreclosure of mortgages on real estate. In addition, liens
24 may be certified annually to the proper tax assessing office,
25 which shall enter the delinquent charges upon the next tax
26 roll against the premises to which the services were
27 rendered. Moneys collected on account of liens shall be
28 promptly remitted to the municipality.
29 The municipality also has the power, from time to time,
30 to sue the occupant or user of that real estate in a civil
31 action to recover money due for sewerage services, plus a
32 reasonable attorney's fee, to be fixed by the court. However,
33 whenever a judgment is entered in such a civil action, the
34 foregoing provisions in this section with respect to filing
HB3852 Engrossed -4- LRB9112662SMdv
1 sworn statements of such delinquencies in the office of the
2 recorder and creating a lien against the real estate shall
3 not be effective as to the charges sued upon and no lien
4 shall exist thereafter against the real estate for the
5 delinquency. Judgment in such a civil action operates as a
6 release and waiver of the lien upon the real estate for the
7 amount of the judgment.
8 The payment of delinquent charges for sewerage service to
9 any premises may be enforced by discontinuing either water
10 service or sewerage service to those premises, or both. A
11 charge is delinquent if it is more than 30 days overdue. Any
12 privately owned public utility, public or municipal
13 corporation, or political subdivision of the State furnishing
14 water service to a premises (i) shall discontinue that
15 service upon receiving written notice from the municipality
16 providing sewerage service that payment of the charge for
17 sewerage service to the premises has become delinquent and
18 (ii) shall not resume water service until receiving written
19 notice from the municipality that the delinquency has been
20 removed. The municipality shall reimburse the privately
21 owned public utility, public or municipal corporation, or
22 political subdivision of the State for the reasonable
23 estimate of water service revenues lost as a result of the
24 discontinuation of water service due to delinquent sewerage
25 charges, and this cost may be placed as a charge upon the
26 person or persons receiving sewerage service. "Sewerage
27 service" means treatment, collection, or transport of
28 sewerage.
29 (Source: P.A. 87-1197.)
30 Section 10. The Sanitary District Revenue Bond Act is
31 amended by changing Sections 7, 11a, and 17 as follows:
32 (70 ILCS 3010/7) (from Ch. 42, par. 319.7)
HB3852 Engrossed -5- LRB9112662SMdv
1 Sec. 7. The board of trustees of any sanitary district
2 that owns and operates or that may hereafter own and operate
3 a sewerage system constructed or acquired under the
4 provisions of any law of this State has the power to make,
5 enact, and enforce all needful rules and regulations in the
6 construction, acquisition, improvement, extension,
7 management, and maintenance of its sewerage system and for
8 the use thereof. The board of trustees of such a sanitary
9 district also has the power to make, enact, and enforce all
10 needful rules, regulations, and ordinances for the
11 improvement, care, and protection of its sewerage system,
12 which may be conducive to the preservation of the public
13 health, comfort, and convenience, and to render the sewage of
14 the sanitary district harmless in so far as it is reasonably
15 possible to do so.
16 The board of trustees of such a sanitary district has the
17 power, by ordinance, to charge the inhabitants thereof for
18 the use and service of its sewerage system and to establish
19 charges or rates for that purpose. Where bonds are issued as
20 provided in sections 2 and 3 of this Act, the board of
21 trustees shall establish rates or charges as provided in this
22 section, and these charges or rates shall be sufficient at
23 all times to pay the cost of operation and maintenance, to
24 provide an adequate depreciation fund, and to pay the
25 principal of and interest upon all revenue bonds issued under
26 Sections 2 and 3 hereof.
27 A depreciation fund is a fund for such replacements as
28 may be necessary from time to time for the continued
29 effective and efficient operation of the system. The
30 depreciation fund shall not be allowed to accumulate beyond a
31 reasonable amount necessary for that purpose, and shall not
32 be used for extensions to the system.
33 Charges or rates shall be established, revised, and
34 maintained by ordinance and become payable as the board of
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1 trustees may determine by ordinance. Such charges or rates
2 shall be liens upon the real estate upon or for which
3 sewerage service is supplied; provided, however, such liens
4 shall not attach to such real estate until such charges or
5 rates have become delinquent as provided by the ordinance of
6 the sanitary district fixing a delinquency date. A lien is
7 created under the preceding sentence only if the sanitary
8 district sends to the owner or owners of record of the real
9 estate, as referenced by the taxpayer's identification
10 number, (i) a copy of each delinquency notice sent to the
11 person who is delinquent in paying the charges or rates or
12 other notice sufficient to inform the owner or owners of
13 record, as referenced by the taxpayer's identification
14 number, that the charges or rates have become delinquent and
15 (ii) a notice that unpaid charges or rates may create a lien
16 on the real estate under this Section. Nothing in this
17 Section shall be construed to give the sanitary district a
18 preference over the rights of any purchaser, mortgagee,
19 judgment creditor or other lien holder arising prior to the
20 filing in the office of the recorder of the county in which
21 such real estate is located, or in the office of the
22 registrar of titles of such county if the property affected
23 is registered under the Torrens System, of notice of said
24 lien. The notice shall consist of a sworn statement setting
25 out (1) a description of the real estate sufficient for the
26 identification thereof, upon or for which the sewerage
27 service was supplied, (2) the amount or amounts of money due
28 for such sewerage service, and (3) the date or dates when
29 such amount or amounts became delinquent. The sanitary
30 district shall send a copy of the notice of the lien to the
31 owner or owners of record of the real estate, as referenced
32 by the taxpayer's identification number. The sanitary
33 district shall have the power to foreclose such lien in like
34 manner and with like effect as in the foreclosure of
HB3852 Engrossed -7- LRB9112662SMdv
1 mortgages on real estate. In addition, liens may be certified
2 annually to the proper tax assessing office, which shall
3 enter the delinquent charges upon the next tax roll against
4 the premises to which the services were rendered. Moneys
5 collected on account of liens shall be promptly remitted to
6 the sanitary district.
7 The sanitary district also has the power, from time to
8 time, to sue the owner, occupant or user of that real estate,
9 or a person receiving any direct or indirect benefit from
10 such services, in a civil action to recover money due for
11 sewerage services, plus a reasonable attorney's fee, to be
12 fixed by the court; provided, however, that the sanitary
13 district shall give notice of its intention to bring such
14 action to the owner of record by regular mail not less than 7
15 days prior to filing such civil action.
16 Judgment in a civil action brought by the sanitary
17 district to recover or collect such charges shall not operate
18 as a release or waiver of the lien upon the real estate for
19 the amount of the judgment. Only satisfaction of the
20 judgment or the filing of a release and satisfaction of lien
21 shall release said lien. The lien for charges on account of
22 services or benefits provided for in this Section and the
23 rights created hereunder shall be in addition to and not in
24 derogation of the lien upon real estate created by and
25 imposed for general real estate taxes.
26 The payment of delinquent charges for sewerage service to
27 any premises may be enforced by discontinuing either water
28 service or sewerage service to those premises, or both. A
29 charge is delinquent if it is more than 30 days overdue. Any
30 privately owned public utility, public or municipal
31 corporation, or political subdivision of the State furnishing
32 water service to a premises (i) shall discontinue that
33 service upon receiving written notice from the sanitary
34 district providing sewerage service that payment of the
HB3852 Engrossed -8- LRB9112662SMdv
1 charge for sewerage service to the premises has become
2 delinquent and (ii) shall not resume water service until
3 receiving written notice from the sanitary district that the
4 delinquency has been removed. The sanitary district shall
5 reimburse the privately owned public utility, public or
6 municipal corporation, or political subdivision of the State
7 for the reasonable estimate of water service revenues lost as
8 a result of the discontinuation of water service due to
9 delinquent sewerage charges, and this cost may be placed as a
10 charge upon the person or persons receiving sewerage service.
11 "Sewerage service" means treatment, collection, or transport
12 of sewerage.
13 (Source: P.A. 87-1197.)
14 (70 ILCS 3010/11a) (from Ch. 42, par. 319.11a)
15 Sec. 11a. The board of trustees of any sanitary district
16 shall have full power at any time to contract with the
17 corporate authorities of the municipality or municipalities
18 situated either wholly or partly within that sanitary
19 district for the treatment and disposal of the sewage of that
20 municipality or municipalities, and for the use of the
21 drains, conduits, treatment plants, pumping plants, and works
22 maintained by that sanitary district for the carrying off,
23 disposal, and treatment of sewage and industrial wastes, in
24 lieu of charging the inhabitants of that municipality or
25 municipalities. The corporate authorities so contracting
26 shall adopt an ordinance imposing rules and regulations with
27 respect to the use of sewers within that municipality and
28 provide for a charge to the inhabitants thereof for the use
29 thereof and for the payment of the charge to be paid to the
30 sanitary district under that contract. Such contracts shall
31 be irrevocable as long as any revenue bonds of the sanitary
32 district are outstanding, but the charge to be paid to the
33 sanitary district shall be payable only from the revenue
HB3852 Engrossed -9- LRB9112662SMdv
1 derived by the municipalities from the charges made to the
2 inhabitants thereof.
3 The charges and rates fixed by the corporate authorities
4 shall be sufficient at all times to pay the charge to be paid
5 to the sanitary districts. Such charges or rates shall be
6 liens upon the real estate upon or for which sewerage service
7 is supplied; provided, however, such liens shall not attach
8 to such real estate until such charges or rates have become
9 delinquent as provided by the ordinance of the municipality
10 fixing a delinquency date. A lien is created under the
11 preceding sentence only if the sanitary district sends to the
12 owner or owners of record of the real estate, as referenced
13 by the taxpayer's identification number, (i) a copy of each
14 delinquency notice sent to the person who is delinquent in
15 paying the charges or rates or other notice sufficient to
16 inform the owner or owners of record, as referenced by the
17 taxpayer's identification number, that the charges or rates
18 have become delinquent and (ii) a notice that unpaid charges
19 or rates may create a lien on the real estate under this
20 Section. Nothing in this Section shall be construed to give
21 the municipality a preference over the rights of any
22 purchaser, mortgagee, judgment creditor or other lien holder
23 arising prior to the filing in the office of the recorder of
24 the county in which such real estate is located, or in the
25 office of the registrar of titles of such county if the
26 property affected is registered under "An Act concerning land
27 titles", approved May 1, 1897, as amended, of notice of the
28 lien. The notice shall consist of a sworn statement setting
29 out (1) a description of the real estate, sufficient for the
30 identification thereof, upon or for which the sewerage
31 service was supplied, (2) the amount or amounts of money due
32 for such sewerage service, and (3) the date or dates when
33 such amount or amounts became delinquent. The sanitary
34 district shall send a copy of the notice of the lien to the
HB3852 Engrossed -10- LRB9112662SMdv
1 owner or owners of record of the real estate, as referenced
2 by the taxpayer's identification number. The municipality
3 shall have the power to foreclose such lien in like manner
4 and with like effect as in the foreclosure of mortgages on
5 real estate. In addition, liens may be certified annually to
6 the proper tax assessing office, which shall enter the
7 delinquent charges upon the next tax roll against the
8 premises to which the services were rendered. Moneys
9 collected on account of liens shall be promptly remitted to
10 the sanitary district.
11 The municipality also has the power, from time to time,
12 to sue the occupant or user of the real estate in a civil
13 action to recover the money due for sewerage services, plus a
14 reasonable attorney's fee, to be fixed by the court.
15 However, when a judgment is obtained in such a civil action,
16 the foregoing provisions in this section with respect to
17 filing sworn statements of such delinquencies in the office
18 of the recorder and creating a lien against the real estate
19 shall not be effective as to charges sued upon and no lien
20 shall exist thereafter against the real estate for that
21 delinquency. Judgment in such a civil action operates as a
22 release and waiver of the lien upon the real estate for the
23 amount of the judgment.
24 The payment of delinquent charges for sewerage service to
25 any premises may be enforced by discontinuing either water
26 service or sewerage service to those premises, or both. A
27 charge is delinquent if it is more than 30 days overdue. Any
28 privately owned public utility, public or municipal
29 corporation, or political subdivision of the State furnishing
30 water service to a premises (i) shall discontinue that
31 service upon receiving written notice from the sanitary
32 district providing sewerage service that payment of the
33 charge for sewerage service to the premises has become
34 delinquent and (ii) shall not resume water service until
HB3852 Engrossed -11- LRB9112662SMdv
1 receiving written notice from the sanitary district that the
2 delinquency has been removed. The sanitary district shall
3 reimburse the privately owned public utility, public or
4 municipal corporation, or political subdivision of the State
5 for the reasonable estimate of water service revenues lost as
6 a result of the discontinuation of water service due to
7 delinquent sewerage charges, and this cost may be placed as a
8 charge upon the person or persons receiving sewerage service.
9 "Sewerage service" means treatment, collection, or transport
10 of sewerage.
11 Such contract may contain appropriate provisions to
12 authorize the sanitary district to proceed, in the name of
13 the municipality, in the collection of such charges and rates
14 as are provided in this section, in the event that the
15 municipality fails to pay when due the charge to be paid to
16 the sanitary district. Any sanitary district, by a civil
17 action, may compel the officials of the municipality to
18 perform all duties imposed upon them by this section,
19 including the making and collection of sufficient charges and
20 rates for that purpose and the application of the revenue
21 therefrom.
22 (Source: P.A. 87-1197.)
23 (70 ILCS 3010/17) (from Ch. 42, par. 319.17)
24 Sec. 17. If after the public hearing the board of
25 trustees of the sanitary district adopts a resolution to
26 proceed with the construction or acquisition of the project,
27 the board of trustees has the power to make and enforce all
28 needful rules and regulations in connection with the
29 construction, acquisition, improvement, or extension, and
30 with the management and maintenance of the project to be
31 constructed or acquired. The board of trustees also has the
32 power to establish the rate or charge to each user of the
33 sewerage system or improvement or extension at a rate which
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1 will be sufficient to pay the principal and interest of any
2 bonds, issued to pay the cost thereof, maintenance, and
3 operation of the system, improvement, or extension and to
4 provide an adequate depreciation fund therefor. Charges or
5 rates shall be established, revised, and maintained by
6 ordinance and become payable as the board of trustees may
7 determine by ordinance. Such charges or rates shall be liens
8 upon the real estate upon or for which sewerage service is
9 supplied; provided, however, such liens shall not attach to
10 such real estate until such charges or rates have become
11 delinquent as provided by the ordinance of the sanitary
12 district fixing a delinquency date. A lien is created under
13 the preceding sentence only if the sanitary district sends to
14 the owner or owners of record of the real estate, as
15 referenced by the taxpayer's identification number, (i) a
16 copy of each delinquency notice sent to the person who is
17 delinquent in paying the charges or rates or other notice
18 sufficient to inform the owner or owners of record, as
19 referenced by the taxpayer's identification number, that the
20 charges or rates have become delinquent and (ii) a notice
21 that unpaid charges or rates may create a lien on the real
22 estate under this Section. Nothing in this Section shall be
23 construed to give the sanitary district a preference over the
24 rights of any purchaser, mortgagee, judgment creditor or
25 other lien holder arising prior to the filing in the office
26 of the recorder of the county in which such real estate is
27 located, or in the office of the registrar of titles of such
28 county if the property affected is registered under the
29 Torrens System, of notice of said lien. The notice shall
30 consist of a sworn statement setting out (1) a description of
31 the real estate sufficient for the identification thereof,
32 upon or for which the sewerage service was supplied, (2) the
33 amount or amounts of money due for such sewerage service, and
34 (3) the date or dates when such amount or amounts became
HB3852 Engrossed -13- LRB9112662SMdv
1 delinquent, (4) the owner of record of the premises. The
2 sanitary district shall send a copy of the notice of the lien
3 to the owner or owners of record of the real estate, as
4 referenced by the taxpayer's identification number. The
5 sanitary district shall have the power to foreclose such lien
6 in like manner and with like effect as in the foreclosure of
7 mortgages on real estate. In addition, liens may be certified
8 annually to the proper tax assessing office, which shall
9 enter the delinquent charges upon the next tax roll against
10 the premises to which the services were rendered. Moneys
11 collected on account of liens shall be promptly remitted to
12 the sanitary district.
13 The sanitary district also has the power, from time to
14 time, to sue the occupant or user of the real estate in a
15 civil action to recover the money due for sewerage services,
16 plus a reasonable attorney's fee, to be fixed by the court.
17 However, whenever a judgment is obtained in such a civil
18 action, the foregoing provision in this section with respect
19 to filing sworn statements of such delinquencies in the
20 office of the recorder of deeds and creating a lien against
21 the real estate shall not be effective as to the charges sued
22 upon and no lien shall exist thereafter against the real
23 estate for that delinquency. Judgment in such a civil action
24 operates as a release and waiver of the lien upon the real
25 estate for the amount of the judgment. The charge provided
26 in this section to be made against each user of an
27 improvement or extension shall be in addition to the charge,
28 if any, made of all users of the system under Section 7
29 hereof, and shall be kept separate and distinct therefrom.
30 The payment of delinquent charges for sewerage service to
31 any premises may be enforced by discontinuing either water
32 service or sewerage service to those premises, or both. A
33 charge is delinquent if it is more than 30 days overdue. Any
34 privately owned public utility, public or municipal
HB3852 Engrossed -14- LRB9112662SMdv
1 corporation, or political subdivision of the State furnishing
2 water service to a premises (i) shall discontinue that
3 service upon receiving written notice from the sanitary
4 district providing sewerage service that payment of the
5 charge for sewerage service to the premises has become
6 delinquent and (ii) shall not resume water service until
7 receiving written notice from the sanitary district that the
8 delinquency has been removed. The sanitary district shall
9 reimburse the privately owned public utility, public or
10 municipal corporation, or political subdivision of the State
11 for the reasonable estimate of water service revenues lost as
12 a result of the discontinuation of water service due to
13 delinquent sewerage charges, and this cost may be placed as a
14 charge upon the person or persons receiving sewerage service.
15 "Sewerage service" means treatment, collection, or transport
16 of sewerage.
17 (Source: P.A. 87-1197.)
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.
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